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Taiwan Smart Machinery | July 19, 2018

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Taiwan Machine Tools: Powering Indonesia’s Automotive Supply Chain with Smart Manufacturing

Taiwan Machine Tools: Powering Indonesia’s Automotive Supply Chain with Smart Manufacturing

Product Launch at Manufacturing Indonesia 2017(Dec. 6th)

Hall A3216-3317, Jakarta International Expo (JIExpo) Kemayoran, Jakarta

Jakarta, December 6th 2017 – Indonesia’s domestic manufacturing industry is still showing positive gains in business expansion, driven by increased demand from domestic and export markets. According to the Indonesian Ministry of Industry, Indonesia’s purchasing managers index (PMI) stood at 50.4 in September 2017. They are optimistic that the industry’s growth until the end of 2017 is still good as the investment realization from various industrial sectors.

The Ministry of Industry also noted that the industrial sector foreign direct investment (FDI) value, up to the first semester of 2017, reached 7.06 billion US dollars. FDI value of this industry sector contributes 45.43 percent of total foreign direct investment in the first semester of 2017, amounted to 15.53 billion US dollars. A number of efforts are still being made to promote viable industrial policy in Indonesia, which is expected to increase production capacity, extend product range, and reduce operational costs.

To support Indonesia in building a regionally competitive production base, the Taiwan machine tool industry will share its achievements in machining technology with local businesses at an industry exhibition in Jakarta. Indonesia–Representatives of several world’s leading automation solutions providers from Taiwan will present their latest products and innovations at the Taiwan Product Launch, which will take part in conjunction withthe Product Application Demo Showduring the Manufacturing Indonesia 2017 at the Jakarta International Expo Center (JIExpo), Kemayoran Jakarta.

This event Organized by the Bureau of Foreign Trade (BOFT), and implemented by the Taiwan External Trade Development Council (TAITRA) and Coperate Synerngy Development Center (CSD), the events aim to enhance the local manufacturing sectors’ competitive edge, especially the automotive sector in Indonesia. Several Taiwanese machine tool makers will lend themselves to industrial development during the event.

Taiwan has remained one of the major suppliers of machine tools to the Indonesia market and will continue serving as the best partner for Indonesia. Imports of Taiwan-made machine tools in 2016, for instance, reached 59.48 million, which made the nation Indonesia’s third biggest supplier of machine tools, accounting for 11% of its total annual imports, which value 556.011 million US dollars. Meanwhile, from January to July this year, imports of Taiwan-made machine tools reached 35.563 million, which increased 9% compared with the same period last year.

Of the total lathes and turning machines rolled out in the January-December period last year, Indonesia absorbed around US$66.53 million worth of such equipment. Taiwan accounted for 12.03% of the total, valuing at US$ 8 million. As for machining centers, Indonesia imported a total of USD$49.41 million during the same period, with Taiwan supplying 14.26% of its requirements in this regard, or some US$11.40 million. Exports of machining center from Taiwan to Indonesia were the 2nd highest last year, whereas exports of lathes and turning machines from Taiwan to Indonesia ranked 4th highest in the year.

The Taiwan machine tool industry possesses an integrated value chain, from research and design to comprehensive manufacturing and assembly, testing, marketing, and after-sales service. Machinery builders are mostly concentrated in central part of the island nation, and enjoy the full backing of the upstream and downstream sectors whose member companies have formed industry clusters also in the area.

Mr. John C. Chen, the Representative of Taipei Economic and Trade Office in Indonesia stressed that Taiwan overall machinery production value this year could break the NT$1 trillion (about US$3.3 billion) for the first time. This year machinery exports rose by 15.2% to US$ 2.7 billion from January to October compared with the same period in 2016. The Intelligent Machinery Program is one of Taiwan President Tsai Ing-wen’s five major industrial development objectives. The program aims to strengthen the industry value chain in intelligent manufacturing, products and services through customized production and seize opportunities in the US $5.2 trillion aerospace market. Other than that, the Indonesian government also has been actively promoting the development of the local auto industry, hoping to become the biggest auto assembly hub in Southeast Asia.

Taiwan is the world’s 7th biggest machine tool producer, controlling 5-6% global market share. Taiwanese machine tool makers have been successful in integrating sophisticated devices and applications into machine tools, like robotic arm, unmanned transportation, and automated storage, to name a few. A number of them have already made significant breakthroughs in automating certain machining processes, and even a whole production line, thus helping create added value in auto parts manufacturing.

With the rising the Internet of Thing and smart manufacturing trends, the Taiwan machine tool industry also has been focusing on developing autonomous systems and services that will equip car factories for future challenges and opportunities. All auto parts and metalworking companies in Indonesia as well as local industry pioneers who are interested in knowing more about the Taiwan-made machine tools are encouraged to attend the exhibition and meet with the 112 Taiwanese exhibitors.

This upcoming event will be an opportune time for businesses in the auto parts manufacturing industry to touch base with the machine tool makers from Taiwan, and to work together in exploring the most favorable way in helping to automate the fledging local auto industry, and turn it into a major auto assembly center in Southeast Asia. The exhibition will be held on Thursday, Dec 6, 2017, starting 10:00 a.m. at Hall A3216-3317, Jakarta International Expo (JIExpo), Kemayoran, Central Jakarta.


For the upcoming machining applications and finished parts exhibition, seven top-notch machine tool makers from Taiwan will feature their respective machining solutions as well as product samples created by their very own machines. They will affirm that Taiwan-made machine tools are the best choice for auto parts components in Indonesia. The companies are:

  • Chin Fong Machine Industrial Co. Ltd.

This company will exhibit 10 different forged auto parts, with each piece serving as proof of its forging and stamping machines’ efficiency, precision and durability. Since 1948, the company devotes to develop mechanical press machine. In recent years, Chin Fong successfully manufacture servo press, 3200 tons hot forging press and knuckle-joint press. The servo press is driven by servo motor; the slide motion curve is changeable and controllable to be used on different kinds of stamping conditions by programming. It makes all kinds of stamping in one press machine possible.

  • Kao Fong Machinery Co. Ltd.(KAFO)

KAFO, established in 1968, has been involved in the production and sale of machine tools for nearly 50 years. The company will exhibit some auto bumper moldings made by its bridge-type machining center, which has been especially designed for such purpose.

  • Victor Taichung Machinery Works Co. Ltd.

This company will showcase some engine cylinder heads made by its horizontal machining centers as well as tire rims made by a dedicated automated production line.

  • Lien Chieh Hydraulic Industrial Co. Ltd.

They will present some aluminum alloy fender skirts and B pillars made by stamping of high-tensile steel sheet using hydraulic presses that have the capability to meet the demands of auto industry for lightweight materials.

  • Shieh Yih Machinery Industry Co. Ltd. (SEYI)

They will highlight its stamping press, which has been tapped to create auto panels, including A-pillar as well as oil pan and window frame. This large workpiece forming equipment for processing sheet metal in auto parts production adopts a crankshaft and connecting rod mechanism to drive gear components. Its ductile contact greatly reduces vibration, noise and heat, and also helps extend the lifespan of a molding die. The machine boasts an energy conserving design that can save over 20% of energy use.

  • Hota Industrial Mfg. Co. Ltd.

This company is both a maker of gear forming machinery and a supplier of gear components for automobiles. They will showcase an assortment of gears for automobiles. The sample product speaks volume of the company’s capability in gear manufacturing.

  • Supertec Machinery Inc.

This company will feature crankshafts, inlet valves, and camshaft journals made by its grinding machines. These will show how important a grinding machine is in processing precision auto parts. Each of the machines and finished samples on exhibit will help explain why Taiwan-made machine tools are the best choice of the auto parts and components manufacturers in Indonesia.


In addition to manufacturing machinery manufacturers, Taiwan’s major industrial automation provider Delta Electronics Inc. will showcase cutting-edge automated cells, which can satisfy the demands of the local metalworking industries for advanced automation in the workplace by cooperating with Equiptop Hitech Corp..

  • Delta Electronics Inc.

They will demonstrate its own design of articulated robotic arm fitted with a CCD, to assist in workpiece clamping operation. This mechanical system provides a practical solution in overcoming issues associated with automation in a machining process; i.e., linear displacement.

  • Equiptop Hitech Corp.

Equiptop’s vertical machining centers and surface grinders will demonstrate Delta’s human-machine interface technology, which enables LAN connection to link with the central control room to monitor the operating conditions and processes of multiple machine tool units.


Key Developments in Smart Manufacturing  

To meet the growing global demand for smart manufacturing equipment that can meet the challenges in the Industry 4.0 era, Taiwanese machinery companies are scrambling to turn out more sophisticated machine models with advanced technology features.


In recent years Tongtai has mainly focused on two industries, Automotive and Aerospace (Double A). In Machine Tool Indonesia 2017, two machine models, VTX-5A and HB-630, are represented for solving the problems the customers met in their machining experiences. Furthermore, with the developments of intelligent machine and hybrid additive manufacturing, now, Tongtai is able to provide more intelligent and flexible solutions to our customers. With the concept of intelligent machines, Tongtai has developed TIMS (Tongtai Intelligence Manufacturing System) and TLM (Tongtai Line Management) to enable operators to easily control production status in order to improve machining efficiency.

Tongtai has constantly developed multi-axes and multi-tasking machines, such as 5-axis horizontal machining centers. It integrates software and hardware to meet the requirements of high flexibility, thus successfully bringing Tongtai into the field of aerospace manufacturing. In additive manufacturing, Tongtai has successfully developed equipment for additive and hybrid additive-subtractive manufacturing. Tongtai also teamed up with Optomec, manufacturer of 3D printed metal and electronics systems, on new hybrid additive manufacturing equipment. Looking into the future, Tongtai will provide more competitive products for the worldwide customers.

  • Victor Taichung

The company would invest NT$3.5 billion on its smart factory in Taichung, with construction due to be completed in 2018. The company expects its new “smart factory” to generate annual revenue of NT$6 billion (US$189 million) after 2018. The facility with four production lines, which will also serve as the company’s headquarters, spans nearly 3.1 hectares at the Taichung Gateway Park. By deploying sensors and other equipment, Victor Taichung hopes to optimize manufacturing efficiency through “big data” analysis.

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